Xeinadin auction pulled after buyers reject £1bn valuation

The proposed sale of UK accountancy practice Xeinadin has been paused after bids fell short of the more than £1bn ($1.36bn) valuation sought by its private equity owner, the Financial Times (FT) reported.

Exponent, the UK buyout firm that invested in Xeinadin roughly four years ago, brought in Evercore last summer to run a competitive auction.

People familiar with the talks told the publication that interest did not translate into offers at the level Exponent was seeking, prompting the decision to end the sale effort.

The abandoned process is being read by advisers as a sign that the recent boom in private equity deals for professional services businesses may be running up against valuation constraints.

Accounting networks across the US, UK and Europe have attracted significant attention from buyout funds, pushing up multiple deals as investors tried to assemble larger platforms from smaller practices, according to the report.

Many sponsors have followed a buy‑and‑build model, acquiring local tax and accounting companies and then standardising systems and investing in technology to improve margins and appeal to larger clients.

However, some have struggled to deliver the returns originally forecast, leading a number of investors to question whether prices in the sector have become inflated.

Xeinadin was set up in 2019 through the combination of more than 100 independent accounting practices and has continued to expand via further takeovers.

The company has more than 130 offices in the UK and Ireland, employing around 2,500 staff.

It offers audit, corporate finance, tax and a range of other professional services to small and medium‑sized businesses. Last month, Xeinadin acquired Grunberg to expand its footprint in London, UK.

“Xeinadin auction pulled after buyers reject £1bn valuation” was originally created and published by International Accounting Bulletin, a GlobalData owned brand.

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